im a sole prop. right now and want to change that over to INC. was wondering were i would have to go to change this. thanks

josh

topsites

04-05-2006, 10:33 PM

Consider going to an LLC instead, it would be closer suited for you as a sole proprietor, and the taxes are easier on an LLC.
You'll need to go to the state corporation commission and file the paperwork and bring some cash (at least 100 dollar fee, bring 200 to be safe). Once you get your LLC certificate, re-license your business under the LLC's name.

LLC = Limited Liability Company (or corporation, depends on state).

p.s.: It's more expensive to get an inc than an llc, if not upfront, then over time.

JTS Landscaping lawn

04-05-2006, 11:28 PM

thanks i was looking online at both and the LLC does look better think that i will go with the llc

Grass Dad

04-05-2006, 11:28 PM

I have a friend who did the LLC thing (his cpa's advice). It was $625. $125 for the state and $500 to just let a lawyer handle it.:dizzy:

FSully

04-06-2006, 12:00 AM

im a sole prop. right now and want to change that over to INC. was wondering were i would have to go to change this. thanks

josh

Have you talk with your lawyer and/or CPA about incorporating? Just curious on why you want to incorporate.

JTS Landscaping lawn

04-06-2006, 05:31 PM

i have employees and some one said that i had to incorp. to llc or inc. also so that incase something happens that they only go after my business instead of my personal stuff and all. something like that

FSully

04-06-2006, 05:44 PM

i have employees and some one said that i had to incorp. to llc or inc. also so that incase something happens that they only go after my business instead of my personal stuff and all. something like that

Well, you can be sole prop. and have employees...just need to file for EIN number. Search your states website and see what is need to INC. or spend the money and have a lawyer do it for you.
But with employess, no matter what sole prop, LLC, or INC. still have to file for that EIN number.

lawnservice

04-06-2006, 07:25 PM

this question comes up all the time
"should I incorporate (S corp, C corp??) should I LLC?"

with a good insurance agent...(liability, vehicle coverage) in this industry one could remain a sole prop. and keep things simple assuming your not a mega company who also owns real estate that the company works out of. (even if you did own real estate you could simply LLC that property and rent it to your business. Owning real estate is much more possible for liability if someone were to get hurt on that property...even a thief could sue you)

I know many will argue this point.

what i have a hard time understanding is the statement guys make when they say 'if i get sued they cant touch my personal stuff'

chances are...if you get sued you lose the business...with out the business you lose your personal stuff anyway.

probably the biggest liability you will have is an auto accident and insurance will cover that if the coverage is proper.

if you're a homeowner you could file a home stead act declaration. cost is around $35 if you do it yourself, $200 if you have a lawyer do it for you, now your home will be protected from creditors. this can be done at your registry of deeds office.

greenjack

04-07-2006, 12:21 AM

Is it important to become a LLC if you are a sole prop.? What are the benefits of becoming an LLC?

lawnservice

04-07-2006, 08:28 AM

Is it important to become a LLC if you are a sole prop.? What are the benefits of becoming an LLC?
the only true benefit is that your personal stuff will be protected from creditors

my opinion...if one goes into business thinking he may have to screw his creditors....he shouldnt be in business

Eclipse

04-07-2006, 08:52 AM

I see quite a few things in this thread that are not quite accurate. Your best bet it to talk with your CPA about Inc. or LLC. They can help determine what may be best for you. They may also be able to help properly set it up for you if not I'm sure they will refer you to a good attorney.

Splicer

04-07-2006, 09:38 AM

Just an FYI, anybody can sue anybody else, but that does not automaticly equate into a win for the one suing...

lawnservice

04-07-2006, 04:47 PM

I see quite a few things in this thread that are not quite accurate. Your best bet it to talk with your CPA about Inc. or LLC. They can help determine what may be best for you. They may also be able to help properly set it up for you if not I'm sure they will refer you to a good attorney.
talk to 3 CPAs. Bet you get 3 different determinations on whats best for your business